Big budget cuts ahead in Ypsilanti

Ypsilanti City Council members say they got the message loud and clear from voters who rejected a proposed income tax Tuesday: Instead of raising taxes, cut costs and keep core services.

The challenge will be figuring out how to do that.

Some council members have called for quick action. Others want the council to work together and solicit more input from residents to close the rift that the failed tax proposal may have caused in the community.

Voters rejected the proposed city income tax by a 2-1 ratio, leaving elected officials to find another way to make up a $2.7 deficit over three years. City administrators are proposing to cut spending, including reducing police and fire services.

Joseph Ohren, an Eastern Michigan University professor who has been working with the city on various matters for more than 10 years, said the tax proposal divided the council, which has generally enjoyed a great deal of consensus. The council voted 4-3 to put the income tax on the ballot.

"The real challenge now is (making) the cuts," Ohren said. "It will take a great deal of conversation."

Council Member Lois Richardson, D-1st Ward, who opposed the tax, agreed that it was a divisive issue for the council and said now is the time to come together to solve the budget problems. "I would hope to see some changes on this council," she said.

Like Ohren, Mayor Paul Schreiber, who supported the tax, said the council needs to come up with a long-term plan to provide city services based on revenues. The council will have to decide how to engage the residents on the issue, he said.

Steve Pierce, a leader of an anti-tax group, said the opposition is ready to engage in the conversation. "We've got to work out a plan to solve our fiscal challenges," he said after the election.

Resident Tyron Wilson, told the council at a meeting the day after the election that it must get creative in working out a solution.

"We're waiting to see how you are going to bring the community together," Wilson said. "You can do it if you have the will."

City Manger Ed Koryzno is proposing $2.76 million in cuts over three years to balance the budget. The cuts include laying off seven police officers and six firefighters and eliminating three and half other jobs in different departments. Koryzno also proposes to eliminate emergency medical service and funding for bus service and to cut park maintenance by 50 percent.

Koryzno suggested council members discuss the budget gap when the council and city administrators convene next month for goal-setting sessions. The council holds yearly goal-setting sessions, moderated by Ohren, to review city business and give administrators directions on how to run the city in the coming year.

Council Member John Gawlas, D-2nd Ward, who supported the tax, said residents expect that police and fire services will not be cut, and the council needs to meet soon to decide on spending cuts in other areas. "It's very important that we work together," he said.

Mayor Pro Tem Trudy Swanson, D-1st Ward, agreed that police and fire services should be maintained. The city should hold public meetings to solicit input from residents, she said. "We've got some brilliant people out there."

Koryzno blames Ypsilanti's financial woes on dwindling state assistance, slow growth in property tax revenues and the escalating cost of services. Property tax increases are capped by the Headlee Amendment and Proposal A, which prevent the city from benefiting from property value increases until a piece of real estate changes hands, he said.

The Headlee Amendment to the state Constitution requires that a millage rate must be rolled back when property assessments rise, so that taxes do not increase faster than the rate of inflation. Proposal A limits the increase in taxable value of individual properties to the inflation or 5 percent annually, whichever is lower.

Council Member Brian Filipiak, D-3rd Ward, who supported the tax, said some residents have suggested he start a political action committee to put pressure on state government to reform the Headlee Amendment and Proposal A. He said he will check to see if a similar committee has been formed in other cities because it's easier and more effective to join an existing group than to start a new one.